On 2 August 2018 IVASS, the Italian insurance regulator, introduced Regulations 40 and 41 regarding the distribution of (re)insurance products and pre-contract information duties.

The EU Insurance Distribution Directive (IDD) (2016/97/EC) has now almost been fully transposed into domestic legislation following changes introduced to the Insurance Code, save for further rules that IVASS has reserved to issue regarding product oversight and governance and financial insurance products.

Alongside these regulations, IVASS also recently published a report following a consultation phase. The clarifications that IVASS provided in the report represent useful guidance for both insurers and intermediaries.

Clarification of new measures

With regard to distribution matters (ie, Regulation 40), IVASS has clarified, among other things, that:

  • banks can distribute non-standardised products through natural persons registered as brokers, subject to certain conditions;
  • banks are not subject to the obligation to take out an errors and omissions policy in connection with distribution activity;
  • 'employees directly involved in the distribution of insurance products' means all employees actually engaged in distribution activities, rather than those who merely preform administrative tasks. Conversely, employees responsible for such distribution have executive powers regardless of the formal qualifications of their office from a labour law perspective.
  • financial intermediaries that enter into group policies for the benefit of others in connection with financial services rendered and that pay the relevant premium (and receive no remuneration) are not required to be registered as insurance distributors; and
  • disclosure on remuneration paid to the distributor is required only when it is paid directly by a client.

As regards pre-contract information duties (ie, Regulation 41), IVASS has clarified, among other things, the following:

  • The standard insurance product information document (IPID) shall be included in the current information package as of 1 October 2018, while the new 'information set' shall be delivered to proposers as of 1 January 2019. The new information set will comprise:
    • the standard IPID;
    • the additional IPID (where needed); and
    • the policy terms and conditions together with the proposal form (if any).

A standalone glossary (ie, separate from the policy terms) will no longer be required.

  • Tailor made products are exempted from the pre-contract information package.
  • The burdensome rules concerning home insurance are not applicable to EU undertakings that perform business in Italy under the freedom of services or freedom of establishment. EU undertakings will be required to publish policy wordings marketed to the public on their websites, although this duty may be fulfilled through the intermediaries that they work with.

For further information on this topic please contact David Maria Marino at DLA Piper Italy by telephone (+39 02 80 61 81) or email ([email protected]). The DLA Piper Italy website can be accessed at

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